How To Look For The Most Affordable Mortgage | #Wilmington NC real estate

http://www.WilmingtonNC-RealEstate.com

 

With lenders quoting a wide variety of interest rates and points, smart mortgage shoppers take a close look when comparing borrowing costs. Sometimes it turns out that the lowest interest rate isn’t necessarily the best buy. Here are some tips: Loupe

  • Compare borrowing costs.
      The simplest way to compare borrowing costs is to ask the lender for the actual annual percentage rate (APR) – the true interest on the loan. The APR consists of the simple interest rate, plus all other charges imposed by the lender. It’s not at all unusual for the APR to be substantially higher than the rate quoted by the lender. What’s more, a simple rate quoted by one lender, although higher than another lender’s advertised simple interest rate, may turn out to have the lower APR.
  • Count the points.
      For the shopper who wants to take into account the cost of points (each point is equal to 1% of the loan amount), an simplified rule of thumb comes in handy: Each point is roughly equal to an interest rate increase of 1/8 of 1% over a payback period of 30 years. Thus, a lender offering a 10% rate with no extra points is offering a better deal than the lender offering, say, a loan at 9 7/8% plus two points. Which is best for you depends on how long you plan to live in the house.

Please call or e-mail us today. We can help you get through all the steps of home buying and selling with the least amount of confusion possible.  Search All Wilmington NC real estate on http://www.cbbaker.com